NIELLO MINI in Sacramento, California offered me my MINI at MSRP.

Of course, I forfeited the "FREE" floor mats, windshield screen and locking lug nuts by refusing to pay the $1,500 dealer markup over MSRP.

So far, I'm very pleased with the dealership. Excellent customer service, and very enthusiastic representatives. It has been encouraging!

http://www.niellomini.com/?gclid=CIK...FQRfagodSTNhkg

 

Thank you, miniclubman....so true.

 

It is certainly not illegal. However, it is the norm of the industry that dealers should sell based on the MSRP. This is the unwritten 'law' in that industry.

It looks like minis are in higher demand on the west coast than the east. This may have something to do with the gas prices: cheaper on the east coast on average, and the pro-environment west coast mentality.

 

It seems like HTClubman is a mini dealer rep. He/she is certainly not on the consumer side.

 

Most dealers charge MSRP due to the fact that they only make 8 - 10% (depending on model) per MINI. When you compair this to BMW who makes close to 30% profit per vehicle it is extremly fair. The No haggleing policy that most dealers go by is to make the car buying experiance and the MINI experiance less stressful and more enjoyable.

 

What's your evidence for that 30% margin? I've never heard that. I've heard Porsche has the largest margins and they aren't that high. I'm not saying outright you're wrong, but I am skeptical of the claim and interested where this 'fact' comes from.

 

I have a friend that is a salesman at a BMW dealership. 30% would be on the high end, depending on model and options bmws can make up to 30 % profit.

 

Listen alex5w - I am more of a consumer than you will ever know or probably be!...(and I'm a she)...but that's just how for-profit business goes. As with most things in life, it boils down to the mighty dollar and I just accept that that is reality! Sometimes the effort and time required to get a deal is not worth it - for me . If it is for you - super, knock yourself out!!

 

As I recall, MINI dealers are not the first to do markups, either -- far from it. What other cars have been known to be sold in California over MSRP? Prius? PT Cruiser when it first came out?

 

I seriously doubt that. He's pulling your leg.

I've seen wholesale price lists (they get published on Bimmerfest all the time & I used one to negotiate when I got my M3), and the markup is closer to 10%. They can make more on dealer options and bonuses, but not even close enough to make a 30% markup.

 

CA dealers tend to markup up the BMW M cars when they first come out. I heard the new M3 was getting $20K premium and more. When the E46 M3 came out they were asking $10K over MSRP. When I got my M3 in '05 (in the Midwest) I got a $1500 discount.

 

When I shop for a car I'm not at all concerned with the dealer's markup or profit margin. There are lots of sources (such as this site) that can give you a very good idea what a particular model is selling for. Once you have that price range information, it's just a metter of finding a dealer who's willing to sell at a price you're willing to pay. As for MSRP being the"unwritten law", go on down to your Nissan dealer and ask to buy a GT-R at MSRP. I'll bet it's one law they haven't heard of.

 

I know Shelby GT-500s are getting high markup; any car where demand exceeds supply is apt to get marked up

My MCS was MSRP at Prestige Mini of Mahwah, not sure about clubbies.

 

Either way I think that you're missing the point. Paying MSRP for a MINI is fair.

 

I paid MSRP -- but not more -- for my JCW and thought that was reasonable, so I agree about that part.

 

Supply and demand my friends...again - MINI, BMW, you name it - these are for profit companies, duh.

And depending on where one lives - the price can be different. Why do Californians pay so freakin much for gas and housing and cars and food....Because we're a wealthy state and the market can bear it. Such is life.

 

prestige MINI charges MSRP and not a penny more.

 

We are in an open market economy. I know the Dodge Challenger, BMW M Series, Nissan GT-R, Prius, Camry Hybrid, Audi S5 to name a few that some dealers sold over MSRP in certain markets. The more people who go to other markets to get their vehicles for MSRP can help to offset the demand and help to lower prices. The more people are willing to pay, the more people will charge.

 

Lots of dealerships charge MSRP - that's why we went to Vegas to get ours (only paid MSRP). South Bay MINI in CA charges MSRP, but we didn't go with them in the end because we wouldn't be able to get our Clubman until 2009 and we CAN'T wait!!

 

Kinda funny you're telling people in one stroke to get over mark-up and in the second you're telling us how you went out of state to buy a MINI @ MSRP. Strange.

The point of this thread was to inform people who don't want to pay mark-up (which they do have the choice) who the dealers are that charge MSRP. All opinions respected.

 

Got my MC in S. CA for $500 under MSRP in early September. Delivery is early to mid November. Also got free floor mats and wheel locks thrown in with no dealer add-ons.

 

Wow - I didn't see your response to me back in September!

Just for the record - I wasn't telling anyone to do anything. I was simply stating that if we don't have to pay WAY over MSRP, then we're not. But if I recall, this thread was also discussing down payments for new MINIs and there I will not squabble with paying money up front that I won't then have to pay later. Those are two different issues!

 

• Stock Market Crashes
• Credit Crisis
• 700 Billion Dollar Bailout
• Unrest in the Housing Market
• Unemployment on the rise
• Gas prices UP and DOWN
• Food prices on the rise

All these factors will slow the Demand for ALL consumer products...including the MINI.

I will be ordering a MCCS within the next few months and have already been working with dealers in the North and South Carolina area. At this point they are selling at MSRP and some below. Although the savings are in the OPTIONS and ACCESSORIES for the MINI's. This is where you can negotiate a little to get free this and discounted that.

Also, Interest rates are negotiable on ALL new cars. IF YOU DON'T ASK, They don't offer! I have got reduced rates on every new car I have purchased. Anywhere from 1/2 a point to 1 1/2 points. You better have good credit and be ready to pass on the deal if they don't want to give. If you are paying top dollar on the front end, don't let them get you on the back end as well.

I am in the position now where I can wait a month or two and watch business slow then be able to hopefully work a little better deal. I have NEVER paid MSRP for a car...it will be hard if I have to. It will make me feel like I have been taken advantage of.

Ford and GM are losing MILLIONS every week, but independent auto dealers get VERY wealthy, especially when they sell at MSRP. Don't let them fool you, even at invoice price they make money, there are holdbacks, incentives and rebates they get monthly for making sales numbers. I'm friends with the largest Honda dealer in the North West...HOLY COW...FAT AND HAPPY...ROLLING IN THE CASH and who has paid MSRP for a Honda EVER...NO ONE!!! Go to a Honda dealer and the first thing they do is pull the invoice out and show you.

Just my thought for today...Can't wait to order my MCCS.

BTW, I'm new here and I have to say, great group of folks at NAM!!!

 

Bottom line: Yes, you can pay over MSRP at many dealers if you want to BUT you don't have to if you're willing to shop around and negotiate. I've purchased three Minis all at MSRP with very little trouble so I know that it can be done. Truth told, if one dealer won't agree to the deal, another one will, so do your due diligence to get the best price.

While I have a personal aversion to paying more than the manufacturer tells me the car is worth, many others do not. Either they've found the perfect car with the color and equipment they want, or they're in a hurry to get a car, or they prefer not to have to drive out of town to another dealer... there could be dozens of reasons that someone would purchase their new Mini for above MSRP, and because it's their money, who am I to judge the wisdom of their decision.

What I do know is that when it comes time to sell any car that was purchased for a price above MSRP you may have trouble getting your money back. Several of my close friends discovered that fact when they tried to sell cars they purchased for $5000 to $20,000 over MSRP.

Initially when highly desirable cars make their debut, enthusiasts rush out to buy them and because the initial demand is so great, and the cars are so few, many dealers mark the cars up. If the desire is strong enough many buyers will step up to the plate no matter what the cost. However, two years later when the excitement has died down and the demand has been satisfied, those same buyers find out that they'll never get the $5K to $20K back at resale time.

 

I was wrong. NW Mini's dealer fee is $595.